Good news for sellers too
Not only will this new mortgage help first-time-buyers, but it is great news for sellers too as it will hopefully boost the chances of finding a suitable buyer with the deposit barrier being removed entirely.
Are there any other 100% mortgage deals available right now?
There are other 100% loan-to-value mortgage deals available, however the majority of these rely on a family member or friend offering savings or their own property as a ‘safety deposit’ for the mortgage. These type of deals are called ‘Guarantor Mortgages’ as the relative for example will guarantee to the lender that they will cover your mortgage repayments if you can’t for any reason.
What if I have some deposit?
If you have saved up a small deposit then a 95% or 90% loan-to-value product may be more suitable. What this means is you pay a deposit that is 5% of the property’s value and the lender will offer you a mortgage loan to cover the other 95% of the property. For a 90% deal you would pay a 10% deposit.
A Countrywide Mortgage Services consultant will be able to assess your circumstances to help you decide which first-time-buyer mortgage is right for you.